In the present and coming times, now that Europe is devastated and mankind is impoverished by world war, it impends upon the workers of the world to organize industry, in order to free themselves from want and exploitation. It will be their task to take into their own hands the management of the production of goods. To accomplish this great and difficult work, it will be necessary to fully recognize the present character of labor. The better their knowledge of society and of the position of labor in it, the less difficulties, disappointments and setbacks they will encounter in this striving.
The basis of society is the production of all goods necessary to life. This production, for the most important part, takes place by means of highly developed technics in large factories and plants by complicated machines. This development of technics, from small tools that could be handled by one man, to big machines handled by large collectives of workers of different kind, took place in the last centuries. Though small tools are still used as accessories, and small shops are still numerous, they hardly play a role in the bulk of the production.
Each factory is an organization carefully adapted to its aims; an organization of dead as well as of living forces, of instruments and workers. The forms and the character of this organization are determined by the aims it has to serve. What are these aims?
In the present time, production is dominated by capital. The capitalist, possessor of money, founded the factory, bought the machines and the raw materials, hires the workers and makes them produce goods that can be sold. That is, he buys the labor power of the workers, to be spent in their daily task, and he pays to them its value, the wages by which they can procure what they need to live and to continually restore their labor power. The value a worker creates in his daily work in adding it to the value of the raw materials, is larger than what he needs for his living and receives for his labor power. The difference that the capitalist gets in his hands when the product is sold, the surplus-value, forms his profit, which in so far as it is not consumed, is accumulated into new capital. The labor power of the working class thus may be compared with an ore mine, that in exploitation gives out a produce exceeding the cost bestowed on it. Hence the term exploitation of labor by capital. Capital itself is the product of labor; its bulk is accumulated surplus-value.
Capital is master of production; it has the factory, the machines, the produced goods; the workers work at its command; its aims dominate the work and determine the character of the organization. The aim of capital is to make profit. The capitalist is not driven by the desire to provide his fellow-men with the necessities of life; he is driven by the necessity of making money. If he has a shoe factory he is not animated by compassion for the painful feet of other people; he is animated by the knowledge that his enterprise must yield profit and that he will go bankrupt if his profits are insufficient. Of course, the normal way to make profit is to produce goods that can be sold at a good price, and they can be sold, normally, only when they are necessary and practical consumption-goods for the buyers. So the shoe-maker, to produce profits for himself, has to produce well-fitting shoes, better or cheaper shoes than others make. Thus, normally, capitalist production succeeds in what should be the aim of production, to provide mankind with its life necessities. But the many cases, where it is more profitable to produce superfluous luxuries for the rich or trash for the poor, or to sell the whole plant to a competitor who may close it, show that the primary object of present production is profit for the capital.
This object determines the character of the organization of the work in the shop. First it establishes the command by one absolute master. If he is the owner himself, he has to take care that he does not lose his capital; on the contrary he must increase it. His interest dominates the work; the workers are his "hands," and they have to obey. It determines his part and his function in the work. Should the workers complain of their long hours and fatiguing work, he points to his task and his solicitudes that keep him busy till late in the night after they have gone home without concerning themselves any more. He forgets to tell, what he hardly understands himself, that all his often strenuous work, all his worry that keeps him awake at night, serves only the profit, not the production itself. It deals with the problems of how to sell his products, how to outrival his competitors, how to bring the largest possible part of the total surplus-value into his own coffers. His work is not a productive work; his exertions in fighting his competitors are useless for society. But he is the master and his aims direct the shop.
If he is an appointed director he knows that he is appointed to produce profit for the shareholders. If he does not manage to do so, he is dismissed and replaced by another man. Of course, he must be a good expert, he must understand the technics of his branch, to be able to direct the work of production. But still more he must be expert in profit-making. In the first place he must understand the technics of increasing the net-profit, by finding out how to produce at least cost, how to sell with most success and how to beat his rivals. This every director knows. It determines the management of business. It also determines the organization within the shop.
The organization of the production within the shop is conducted along two lines, of technical and of commercial organization. The rapid development of technics in the last century, based upon a wonderful growth of science, has improved the methods of work in every branch. Better technics is the best weapon in competition, because it secures extra profit at the cost of the rivals. This development increased the productivity of labor, it made the goods for use and consumption cheaper, more abundant and more varied, it increased the means of comfort, and, by lowering the cost of living, i.e., the value of labor power, enormously raised the profit of capital. This high stage of technical development brought into the factory a rapidly increasing number of experts, engineers, chemists, physicists, well versed by their training at universities and laboratories in science. They are necessary to direct the intricate technical processes, and to improve them by regular application of new scientific discoveries. Under their supervision act skilled technicians and workers. So the technical organization shows a carefully regulated collaboration of various kinds of workers, a small number of university-trained specialists, a larger number of qualified professionals and skilled workers, besides a great mass of unskilled workers to do the manual work. Their combined efforts are needed to run the machines and to produce the goods.
The commercial organization has to conduct the sale of the product. It studies markets and prices, it advertises, it trains agents to stimulate buying. It includes the so-called scientific management, to cut down costs by distributing men and means; it devises incentives to stimulate the workers to more strenuous efforts; it turns advertising into a kind of science taught even at universities. It is not less, it is even more important than technics to the capitalist masters; it is the chief weapon in their mutual fight. From the view-point of providing society with its life necessities, however, it is an entirely useless waste of capacities.
But also the forms of technical organization are determined by the same motive of profit. Hence the strict limitation of the better paid scientific experts to a small number, combined with a mass of cheap unskilled labor. Hence the structure of society at large, with its low pay and poor education for the masses, with its higher pay—so much as higher education demands for the constant filling of the ranks—for a scientifically trained minority.
These technical officials have not only the care of the technical processes of production. Under capitalism they have also to act as taskmasters of the workers. Because under capitalism production of goods is inseparably connected with production of profit, both being one and the same action, the two characters of the shop-officials, of a scientific leader of production and of a commanding helper of exploitation, are intimately combined. So their position is ambiguous. On the one hand they are the collaborators of the manual workers, by their scientific knowledge directing the process of transformation of the materials, by their skill increasing the profits; they also are exploited by capital. On the other hand they are the underlings of capital, appointed to hustle the workers and to assist the capitalist in exploiting them.
It may seem that not everywhere the workers are thus exploited by capital. In public-utility enterprises, for instance, or in co-operative factories. Even if we leave aside the fact that the former, by their profit, often must contribute to the public funds, thus relieving the taxes of the propertied class, the difference with other business is not essential. As a rule co-operatives have to compete with private enterprises; and public utilities are controlled by the capitalist public by attentive criticism. The usually borrowed capital needed in the business demands its interest, out of the profits. As in other enterprises there is the personal command of a director and the forcing up of the tempo of the work. There is the same exploitation as in every capitalist enterprise. There may be a difference in degree; part of what otherwise is profit may be used to increase the wages and to improve the conditions of labor. But a limit is soon reached. In this respect they may be compared with private model enterprises where sensible broad-minded directors try to attach the workers by better treatment, by giving them the impression of a privileged position, and so are rewarded by a better output and increased profit. But it is out of the question that the workers here, or in public utilities or co-operatives, should consider themselves as servants of a community, to which to devote all their energy. Directors and workers are living in the social surroundings and the feelings of their respective classes. Labor has here the same capitalist character as elsewhere; it constitutes its deeper essential nature under the superficial differences of somewhat better or worse conditions.
Labor under capitalism in its essential nature is a system of squeezing. The workers must be driven to the utmost exertion of their powers, either by hard constraint or by the kinder arts of persuasion. Capital itself is in a constraint; if it cannot compete, if the profits are inadequate, the business will collapse. Against this pressure the workers defend themselves by a continual instinctive resistance. If not, if they willingly should give way, more than their daily labor power would be taken from them. It would be an encroaching upon their funds of bodily power, their vital power would be exhausted before its time, as to some extent is the case now; degeneration, annihilation of health and strength, of themselves and their offspring, would be the result. So resist they must. Thus every shop, every enterprise, even outside the times of sharp conflict, of strikes or wage reductions, is the scene of a constant silent war, of a perpetual struggle, of pressure and counter-pressure. Rising and falling under its influence, a certain norm of wages, hours and tempo of labor establishes itself, keeping them just at the limit of what is tolerable and intolerable (if intolerable the total of production is effected). Hence the two classes, workers and capitalists, while having to put up with each other in the daily course of work, in deepest essence, by their opposite interests, are implacable foes, living, when not fighting, in a kind of armed peace.
Labor in itself is not repulsive. Labor for the supplying of his needs is a necessity imposed on man by nature. Like all other living beings, man has to exert his forces to provide for his food. Nature has given them bodily organs and mental powers, muscles, nerves and brains, to conform to this necessity. Their wants and their means are harmoniously adapted to one another in the regular living of their life. So labor, as the normal use of their limbs and capacities, is a normal impulse for man and animal alike. In the necessity of providing food and shelter there is, to be sure, an element of constraint. Free spontaneousness in the use of muscles and nerves, all in their turn, in following every whim, in work or play, lies at the bottom of human nature. The constraint of his needs compels man to regular work, to suppression of the impulse of the moment, to exertion of his powers, to patient perseverance and self-restraint. But this self-restraint, necessary as it is for the preservation of oneself, of the family, of the community, affords the satisfaction of vanquishing impediments in himself or the surrounding world, and gives the proud feeling of reaching self-imposed aims. Fixed by its social character, by practice and custom in family, tribe or village, the habit of regular work grows into a new nature itself, into a natural mode of life, a harmonious unity of needs and powers, of duties and disposition. Thus in farming the surrounding nature is transformed into a safe home through a lifelong heavy or placid toil. Thus in every people, each in its individual way, the old handicraft gave to the artisans the joy of applying their skill and fantasy in the making of good and beautiful things for use.
All this has perished since capital became master of labor. In production for the market, for sale, the goods are commodities which besides their utility for the buyer, have exchange-value, embodying the labor implemented; this exchange-value determines the money they bring. Formerly a worker in moderate hours—leaving room for occasional strong exertion—could produce enough for his living. But the profit of capital consists in what the worker can produce in surplus to his living. The more value he produces and the less the value of what he consumes, the larger is the surplus-value seized by capital. Hence his life-necessities are reduced, his standard of life is lowered as much as possible, his hours are increased, the tempo of his work is accelerated. Now labor loses entirely its old character of pleasant use of body and limbs. Now labor turns into a curse and an outrage. And this remains its true character, however mitigated by social laws and by trade-union action, both results of the desperate resistance of the workers against their unbearable degradation. What they may attain is to turn capitalism from a rude abuse into a normal exploitation. Still then labor, being labor under capitalism, keeps its innermost character of inhuman toil: the workers, compelled by the threat of hunger to strain their forces at foreign command, for foreign profit, without genuine interest, in the monotonous fabrication of uninteresting or bad things, driven to the utmost of what the overworked body can sustain, are used up at an early age. Ignorant economists, unacquainted with the nature of capitalism, seeing the strong aversion of the workers from their work, conclude that productive work, by its very nature, is repulsive to man, and must be imposed on unwilling mankind by strong means of constraint.
Of course, this character of their work is not always consciously felt by the workers. Sometimes the original nature of work, as an impulsive eagerness of action, giving contentment, asserts itself. Especially in young people, kept ignorant of capitalism and full of ambition to show their capacities as fully-qualified workers, feeling themselves moreover possessor of an inexhaustible labor-power. Capitalism has its well-advised ways of exploiting this disposition. Afterwards, with the growing solicitudes and duties for the family, the worker feels caught between the pressure of the constraint and the limit of his powers, as in tightening fetters he is unable to throw off. And at last, feeling his forces decay at an age that for middle-class man is the time of full and matured power, he has to suffer exploitation in tacit resignation, in continuous fear of being thrown away as a worn-out tool.
Bad and damnable as work under capitalism may be, still worse is the lack of work. Like every commodity, labor-power sometimes finds no buyer. The problematic liberty of the worker to choose his master goes hand in hand with the liberty of the capitalist to engage or to dismiss his workers. In the continuous development of capitalism, in the founding of new enterprises and the decline or collapse of old ones, the workers are driven to and fro, are accumulated here, dismissed there. So they must consider it good luck even, when they are allowed to let themselves be exploited. Then they perceive that they are at the mercy of capital. That only with the consent of the masters they have access to the machines that wait for their handling.
Unemployment is the worst scourge of the working class under capitalism. It is inherent in capitalism. As an ever returning feature it accompanies the periodical crises and depressions, which during the entire reign of capitalism ravaged society at regular intervals. They are a consequence of the anarchy of capitalist production. Each capitalist as an independent master of his enterprise is free to manage it at his will, to produce what he thinks profitable or to close the shop when profits are failing. Contrary to the careful organization within the factory there is a complete lack of organization in the totality of social production. The rapid increase of capital through the accumulated profits, the necessity to find profits also for the new capital, urges a rapid increase of production flooding the market with unsaleable goods. Then comes the collapse, reducing not only the profits and destroying the superfluous capital, but also turning the accumulated hosts of workers out of the factories, throwing them upon their own resources or on meagre charity. Then wages are lowered, strikes are ineffective, the mass of the unemployed presses as a heavy weight upon the working conditions. What has been gained by hard fight in times of prosperity is often lost in times of depression. Unemployment was always the chief impediment to a continuous raising of the life standard of the working class.
There have been economists alleging that by the modern development of big business this pernicious alternation of crises and prosperity would disappear. They expected that cartels and trusts, monopolizing as they do large branches of industry, would bring a certain amount of organization into the anarchy of production and smooth its irregularities. They did not take into account that the primary cause, the yearning for profit, remains, driving the organized groups into a fiercer competition, now with mightier forces. The incapacity of modern capitalism to cope with its anarchy was shown in a grim light by the world crisis of 1930. During a number of long years production seemed to have definitely collapsed. Over the whole world millions of workers, of farmers, even of intellectuals were reduced to living on the doles, which the governments by necessity, had to provide: From this crisis of production the present war crisis took its origin.
In this crisis the true character of capitalism and the impossibility to maintain it, was shown to mankind as in a searchlight. There were the millions of people lacking the means to provide for their life necessities. There were the millions of workers with strong arms, eager to work; there were the machines in thousands of shops, ready to whirl and to produce an abundance of goods. But it was not allowed. The capitalist ownership of the means of production stood between the workers and the machines. This ownership, affirmed if necessary by the power of police and State, forbade the workers to touch the machines and to produce all that they themselves and society needed for their existence. The machines had to stand and rust, the workers had to hang around and suffer want. Why? Because capitalism is unable to manage the mighty technical and productive powers of mankind to conform to their original aim, to provide for the needs of society.
To be sure, capitalism now is trying to introduce some sort of organization and planned production. Its insatiable profit-hunger cannot be satisfied within the old realms; it is driven to expand over the world, to seize the riches, to open the markets, to subject the peoples of other continents. In a fierce competition each of the capitalist groups must try to conquer or to keep to themselves the richest portions of the world. Whereas the capitalist class in England, France, Holland made easy profits by the exploitation of rich colonies, conquered in former wars, German capitalism with its energy, its capacities, its rapid development, that had come too late in the division of the colonial world, could only get its share by striving for world-power, by preparing for world war. It had to be the aggressor, the others were the defenders. So it was the first to put into action and to organize all the powers of society for this purpose; and then the others had to follow its example.
In this struggle for life between the big capitalist powers the inefficiency of private capitalism could no longer be allowed to persist. Unemployment now was a foolish, nay, a criminal waste of badly needed manpower. A strict and careful organization had to secure the full use of all the labor power and the fighting power of the nation. Now the untenability of capitalism showed itself just as grimly from another side. Unemployment was now turned into its opposite, into compulsory labor. Compulsory toil and fighting at the frontiers where the millions of strong young men, by the most refined means of destruction mutilate, kill, exterminate, "wipe out" each other, for the world-power of their capitalist masters. Compulsory labor in the factories where all the rest, women and children included, are assiduously producing ever more of these engines of murder, whereas the production of the life necessities is constricted to the utmost minimum. Shortage and want in everything needed for life and the falling back to the poorest and ugliest barbarism is the outcome of the highest development of science and technics, is the glorious fruit of the thinking and working of so many generations! Why? Because notwithstanding all delusive talk about community and fellowship, organized capitalism, too, is unable to handle the rich productive powers of mankind to their true purpose, using them instead for destruction.
Thus the working class is confronted with the necessity of itself taking the production in hand. The mastery over the machines, over the means of production, must be taken out of the unworthy hands that abuse them. This is the common cause of all producers, of all who do the real productive work in society, the workers, the technicians, the farmers. But it is the workers, chief and permanent sufferers from the capitalist system, and, moreover, majority of the population, on whom it impends to free themselves and the world from this scourge. They must manage the means of production. They must be masters of the factories, masters of their own labor, to conduct it at their own will. Then the machines will be put to their true use, the production of abundance of goods to provide for the life necessities of all.
This is the task of the workers in the days to come. This is the only road to freedom. This is the revolution for which society is ripening. By such a revolution the character of production is entirely reversed; new principles will form the basis of society. First, because the exploitation ceases. The produce of the common labor [will belong to] all those who take part in the work. No surplus-value to capital any more; ended is the claim of superfluous capitalists to a part of the produce.
More important still than the cessation of their share in the produce is the cessation of their command over the production. Once the workers are masters over the shops the capitalists lose their power of leaving in disuse the machines, these riches of mankind, precious product of the mental and manual exertion of so many generations of workers and thinkers. With the capitalists disappears their power to dictate what superfluous luxuries or what rubbish shall be produced. When the workers have command over the machines they will apply them for the production of all that the life of society requires.
This will be possible only by combining all the factories, as the separate members of one body, into a well organized system of production. The connection that under capitalism is the fortuitous outcome of blind competition and marketing, depending on purchase and sale, is then the object of conscious planning. Then, instead of the partial and imperfect attempts at organization of modern capitalism, that only lead to fiercer fight and destruction, comes the perfect organization of production, growing into a world-wide system of collaboration. For the producing classes cannot be competitors, only collaborators.
These three characteristics of the new production mean a new world. The cessation of the profit for capital, the cessation of unemployment of machines and men, the conscious adequate regulation of production, the increase of the produce through efficient organization give to each worker a larger quantity of product with less labor. Now the way is opened for a further development of productivity. By the application of all technical progress the produce will increase in such a degree that abundance for all will be joined to the disappearance of toil.